Frequently Asked Questions

General questions

FerratumP2P is a platform which allows you to invest in business and consumer loans quickly and easily.

How does it work?

Returns on P2P investments are the result of accrued interest that debtors pay on their loans.

All loan applications are reviewed carefully and loan approvals are based on a number of factors including the borrower´s ability to repay.

Ferratum Group fully manages the lending process and passes instalments made by debtors to the investors.

Why choose FerratumP2P?

Why FerratumP2P? Our platform offers an opportunity to invest in business and consumer loans quickly and easily. We pride ourselves on ease of use, speed, convenience, and transparency.

Safety – Investors risk no money. If a debtor is more than 60-days in default with their repayments, the investor will automatically receive 100% of the unpaid principal.

Experience – Ferratum Oyj and its subsidiaries including Ferratum Czech s.r.o. form the Ferratum Group, a leading international provider of mobile financial services. As a pioneer in the field of financial technology, Ferratum Group has expanded its operations to 25 countries since its formation in 2005.

Simplicity – with our no-risk, buyback guarantee, investors can invest in any available loan with a single click with ease and peace of mind.

Automatic investing – Investors set up rules so that whenever a new loan becomes available which matches the loan rules, investment is automatically made.

Advanced investing – do you want to review the loan parameters before making an investment? Do you want to invest only in loans which you have selected yourself? Then this investing mode is ideal for you.

API – use this mode to browse loan details and have more control of your investments.

Who is FerratumP2P?

FerratumP2P is a division of Ferratum Czech s.r.o.

Ferratum Oyj and its subsidiaries including Ferratum Czech s.r.o. form the Ferratum Group, a leading international provider of mobile financial services. As a pioneer in the field of financial technology, Ferratum Group has expanded its operations to 25 countries since its formation in 2005.

Who can invest with FerratumP2P?

To become a FerratumP2P investor an investor must be at least 18 years of age and be a European Union citizen or a citizen of a European Free Trade Association country.

An investor must also have a bank account authorised and regulated in the European Union or a European Free Trade Association country, and the bank account must be in his or her name, except as restricted by the guidelines in the investor´s country of origin.

Before I start investing…

What documents should I read to learn more about investing?

We take your investment seriously and, as such, we have implemented measures to keep your investment safe. However, as with any investment, there are always some risks.

Before investing, we recommend you read the following documents carefully:

To register, click here. Enter your email address and create a password for your new account. You will then receive a confirmation email with your log in details.

When you are ready to invest, you will onboard via our Onboarding Wizard application where you enter your personal information, address, bank account details, and upload copies of your documents.

Next, review and confirm the information you provided is correct and that you have familiarised yourself with the General Business Terms and Conditions and Framework Agreement.

Once you have confirmed your details, we will review your documents. Once we have reviewed your documents, you will receive confirmation of your account between 1 and 3 working days.

My bank account details

As part of the onboarding process, you will be asked to provide us with your bank account details. To verify bank account ownership, we will need a digital copy of your bank statement displaying your name and account ownership details. You may, of course, hide the account balance and any transactional information.

The bank account you provide us during the onboarding process will be your default bank account which will be used for all transactions.

After completing the onboarding process, you can add additional bank accounts in different currencies under My Profile. Bank statements for each account is required to verify ownership.

Under My Profile, you can also remove bank accounts. Once an account is removed, it will no longer be visible under My Profile, however, upon your request, we can reactivate removed accounts.

Signing the Framework Agreement

The last step of the onboarding process involves you signing a Framework Agreement for investing in the FerratumP2P platform.

We recommend you read the Framework Agreement and all related documents carefully including the General Business Terms and Conditions.

Investing

How does the investing process work?

How does FerratumP2P work?

Loans offered on the FerratumP2P platform are active loans from Ferratum Group products which it administers and collects from debtors.

Every loan application undergoes a stringent review and approval process including credit scoring.

Approved Ferratum Group loans with a medium to long maturity are then offered as investments through Ferratum P2P.

You may start investing as soon as your application has been approved and you have transferred funds for investing into the investment account. There are several investment modes available:

“Basic” is intended for those who are looking for a carefree investment, or perhaps don’t have experience with investments. With a single click, an investor invests in all available loans. With our guarantee to buyback 100% of all unpaid loans, there is no risk to the investor.

“Advanced” is aimed at more advanced investors. In this mode, investors have the option to browse each loan, optimise yields, and decide where they to put their money.

“Automatic” is where investors can set investment filters and our automated system will take care of the rest.

API (Application Programming Interface) mode allows investors to invest through their own API connection or other software application. Advanced IT knowledge is necessary for this mode

If, for any reason, you wish to withdraw from any investment, you may do so within 14 days. You will get your money back minus any pay-outs you may have received.

My investments

It is our aim to ensure that debtors repay their loans and on time. If a debtor is in arrears with a repayment instalment, we notify them immediately. In most cases where debtors fail to make an instalment on time, it is due to an oversight on their part.

However, in general, if after issuing a reminder, a debtor does not make payment, the loan is defaulted and passed to a collection agency who specialises in such matters.

Depending on the loan type, the debtor may have the option to repay the loan before its maturity date, in which case the debtor only pays the interest which accrued until the loan was repaid, and not the interest for the full loan term.

The debtor may also spread the loan over a longer term, or increase the amount borrowed.

If the debtor is 60 days in default, Ferratum will automatically refund the investor 100% of the unrepaid principal in the form of a special instalment called Buyback and the investment will be closed.

Instalments are distributed among investors in proportion to the investors´ shares. This amount is then credited to the investors´ investment account.

You can view a list of the instalments paid under My Investments.

Although through Basic Mode investors are able to invest in multiple loans simultaneously, investments are always made into individual loans.

Under My Investments, you see a full list of investments in individual loans, as well as view statistics for each loan.

BuyBack

When a loan defaults, investors receive 100% of the remaining investment principal in the form of a special instalment called Buyback, and close the investment. Here is an example of an investment of €1,000 into a loan with a 100% buyback. Say, a borrower made regular repayments on their loan but after paying €400 on the principal amount and €50 in interest, the borrower stopped repaying his/her loan. As a result, there is now an unpaid principal amount of €600. Ferratum will pay the investor 100% of the balance of the unpaid principal which is €600. In this example, the investor invested €1,000 and received a total of €1,050

Information about Loans

Source of loans

FerratumP2P offers the opportunity to invest in consumer and business loans. All loans available for investing are approved, active loans provided by Ferratum Group.

Ferratum Group offers an extensive portfolio of loans with various parameters and all loans offered on FerratumP2P are all Ferratum Group loan products.

As with any investment, there are always some risks. The lending industry is no exception and is, of course, dependent on the repayments of its debtors.

At Ferratum Group, all loan applications are carefully reviewed and approvals are based on a number of key factors including our scoring system which is aimed at reducing the number of potential defaults.

Every loan application is reviewed by a specialised department with an experienced team. We also screen all applicants in both banking and non-banking registers to assess their overall financial standing.

What returns can I expect?

Ferratum Czech, s.r.o. sells to investors the receivables from Ferratum Group debtors, and based on our expertise and years of experience, investors can expect an average expected annual net return of 4.9%.

May borrowers repay their loans early and if so, what happens?

Debtors may repay their loans before the loan maturity date in which case, debtors only pay a pro-rata fee i.e. the interest which accrued before the loan was repaid.

The investor then receives an adjusted share of the repaid amount.

What is the minimum and maximum investment amount I can invest?

The minimum investment amount is CZK 500 (approx. 25.00 €), however, there is no limit to how much you can invest.

Transferring funds

How do I transfer funds into the investment account?

Payment transfer details such as the account number and variable symbol are sent to the investor after he or she has successfully onboarded and the account has been approved. Payment details are then viewable in My Account, under Cash Account – Add Funds.

Transferring funds to the investment account takes between 1 and 3 days.

Investors can invest in various currencies for which separate accounts will be set up for each currency. Funds are then transferred in the currency of the corresponding bank account.

You can transfer funds in one of two ways:

From a bank account held in your name which has been verified by us and is added to My Profile – Bank Accounts

By using the Paysera, TransferWise or similar services

To prevent money laundering, we are only able to accept funds under the following three conditions:

You have specified the correct variable symbol

The account holder name is the same as your name

If you use the services of Paysera or TransferWise, we will ask you to substantiate that the funds originated from your account (by presenting a payment order or a bank statement).

If payments do not meet the above conditions, funds will be returned to the payer’s account.

How do I make payments from abroad?

To make payments from abroad, we recommend using SEPA (Single Euro Payments Area) payments. This method makes it possible for us to properly identify the sender.

Can I use across-the-border services like Transferwise, Paysera or similar?

Yes, you may. However, we will ask you to substantiate that the funds originated from your account (by presenting a payment order or a bank statement).

Can I use an online currency convertor to convert funds?

Yes, you may. However, we will ask you to substantiate that the funds originated from your account (by presenting a payment order or a bank statement). When you transfer funds, please send us the confirmation by email. If we do not receive confirmation and we are unable to identify who the owner is, payment will be returned.

How much money can I deposit into the investment account?

There is no limit to how much money you can transfer.

How can I withdraw money from the investment account?

Money which has not been invested into loans can be transferred to your bank account at any time.

You can transfer the money to any of your bank accounts which have been approved via My Profile – Bank Accounts.

You can request a withdrawal via Cash Account – Money Withdrawal. The request for withdrawal will immediately be reflected in your investment account, however, the actual transfer will occur next working day. You will receive confirmation by e-mail and text message (SMS) when the money has been transferred to your account.

My profile

Managing your bank accounts

There is no limit to the number of bank accounts you can register.

After you´ve onboarded, you will be able to manage the bank accounts from which you have been using to transfer and withdraw funds under My Profile – Bank Accounts.

Adding an account – to add a new account, you will need enter the IBAN, select the currency type, create a nickname for the account, and upload a copy of your bank statement. Once we have approved the account, it will be immediately available active for withdrawing and transferring funds. Note that any bank account you wish to add must be in your name and must be registered in the EU or in the EFTA.

Removing an account – Under My Profile, you can also remove bank accounts. Once an account is removed, it will no longer be visible under My Profile, however, upon your request, we can reactivate removed accounts.

Updating my information

Amending your personal data, address and telephone number can only be updated by us. If you wish to update any of these details, please submit a request and provide the necessary documentation.

Cash account

How do I view my transactions?

All transactions performed through FerratumP2P including deposits, withdrawals, investments, and instalments can be tracked in section Cash Account.

How do I withdraw funds?

Money which has not been invested into loans can be transferred to your bank account at any time.

You can transfer the money to any of your bank accounts which have been approved via My Profile – Bank Accounts.

You can request a withdrawal via Cash Account – Money Withdrawal. The request for withdrawal will immediately be reflected in your investment account, however, the actual transfer will occur next working day. You will receive confirmation by e-mail and text message (SMS) when the money has been transferred to your account.

Currency exchange

As of June 2017, we no longer accept deposits made in CZK. We can help you exchange any instalments in CZK to EUR for further investment.

The exchange is made via Česká spořitelna bank, which is the bank where Ferratum Czech s.r.o. holds its bank accounts.

Exchange rate is based on the current selling exchange rate of Česká spořitelna at the date of transfer.

You can enter your request for transfer via Cash Account – Currency Conversion. Funds in CZK will be deducted immediately, and the converted EUR funds will be credited as soon as the bank transfer has been completed.

Transfers are made within two working days of the date of your request.

Glossary of terms

Contractual installments

Contractual instalments are repayment instalments which debtors must make for the loan granted to them. Each instalment has two components – capital and interest.

Expected installments

Expected instalments are instalments that have been determined by a statistical model consisting of historical data of specific repaid loans.

Expected instalments take into account the probability that some debtors will repay the loan before it matures, some will pay their instalments late, and others will default on repaying their loans.

In an ideal case, the expected instalment and the real instalment would be identical. However, one must bear in mind that this is merely a model, hence that real instalments are likely to differ depending on the behaviour of the debtors.

The expected instalments vis-à-vis the contractual instalments should provide the investor a better idea about the return on investment.

Real installments

Real instalments are the actual amounts repaid by debtors, which are then distributed among the investors in proportion to their shares in the investment.

Principle

The amount you have invested

Interest

Reward for loaning the money

Buyback

If the debtor fails to pay an instalment for 60 days, we will automatically buy back from you your share in the debtor’s loan for 100% of the remaining principle

Expected IRR

A financial indicator which takes into account the time component of the investment